Top 4 K-Pop Agencies Report Combined Quarterly Revenue of 1.278 Trillion Won

HYBE, SM Entertainment, JYP, and YG Entertainment—the four major agencies in South Korea’s entertainment industry—recorded combined quarterly revenue of 1.278 trillion won in the first quarter of 2026. This represents the highest quarterly performance in the entertainment sector to date.

Among the agencies, HYBE led alone with revenue of 520 billion won. It achieved operating profits of 78 billion won and an operating profit margin of 15%, marking a 22% increase compared to the same period last year. SM Entertainment reported revenue of 415 billion won (with operating profits of 52 billion won), showing an 18% rise in revenue and a 24% increase in operating profits versus the prior quarter. JYP generated revenue of 198 billion won (with operating profits of 41 billion won) and attained the highest operating profit margin at 20.7% among the four agencies. YG Entertainment recorded revenue of 145 billion won.

Notably, all four agencies achieved double-digit growth compared to the same period last year—this is the first time such a scenario has occurred since 2022. Industry analysts believe the K-pop industry is shifting away from a structure dependent on single artists toward a more stable revenue model based on diversified portfolios.

HYBE demonstrated that its multi-artist system was already in place even before BTS’s full reunion. SEVENTEEN’s Japanese dome tours and TOMORROW X TOGETHER’s North American arena tours drove performance-related revenue in the first quarter, while revenue from the Weverse platform increased by 31% to 82 billion won. SM Entertainment saw its NCT group account for 42% of album sales, proving the effectiveness of its strategy to diversify its artists. JYP had STRAY KIDS contribute 52% of its revenue, and with each member generating over 300 million won in earnings, it exhibited the most efficient operations among the four agencies.

On the stock market, the entire entertainment sector is facing neglect.

However, the industry is focusing on expanding “story IP” as a key driver for future growth. The subculture market, which includes global animations and games, is estimated to be about 10 times larger than the music industry. HYBE has been pursuing webtoon and animation projects since 2015, and this year it plans to produce an animation version of the webtoon “Darkmoon: Altar of the Moon,” based on the ENHYPEN universe, in collaboration with Japanese platform Aniplex. Story IP is regarded as a complementary strategy for the K-pop industry, which faces significant “human risk,” as it can generate revenue 24/7 even in the absence of artists.